ITR filing: The number of individuals declaring over Rs 1 crore as taxable income surged fivefold from assessment year (AY) 2013-14 to AY2023-24. According to a report by SBI economic research, the number of crorepati taxpayers was 44,000 in FY2013, which increased to 2.2 lakh taxpayers in FY2024.
The report, How Tax Simplification has given a necessary fillip to ITR Filing, noted that with a growing emphasis on progressive taxation, direct taxes accounted for 56.7% of total tax revenue in AY24, marking the highest percentage in 14 years compared to 54.6% in AY23. Personal income tax (PIT) collections have shown a faster growth rate than Corporate tax collections since FY21, with PIT increasing by 6% and CIT by 3%.
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According to the report, over the past decade, the total number of taxpayers has surged by 2.3 times to reach 8.62 crore in Assessment Year 2024 (AY24). Particularly noteworthy is the remarkable growth observed in the income bracket exceeding Rs 10 lakh. A more detailed examination reveals a noticeable shift in the middle-class segment of India, with individuals moving from the income range of Rs 1.5-5.0 lakh in AY14 to Rs 2.5-10.0 lakh in AY24.
Also, it noted that the number of female taxpayers reached 15% of all taxpayers. The report attributes this shift to the government’s progressive taxation regime and tax simplification efforts.
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“The significant reduction in income disparity and increase in ITR filings demonstrate the government’s efforts to reach the bottom of the pyramid,” SBI’s Group Chief Economic Advisor Soumya Kanti Ghosh noted.
India has seen the emergence of a new billionaire approximately every five days in the last year, resulting in the total number of US dollar billionaires surpassing 300 for the first time. The 2024 Hurun India Rich List reveals that India now boasts a total of 334 billionaires, representing a significant increase of 75 from the previous year. The report highlights a trend towards more decentralized and widespread wealth creation in the country. The number of cities represented in the rich list has expanded to 97 over the past decade, up from 95 the year before and just 10 when the list was initially introduced.
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In February this year, Minister of State in the Finance Ministry Pankaj Chaudhry provided data in a written response showing that the number of individuals filing e-returns with incomes exceeding Rs 1 crore surpassed 1.09 lakh in Assessment Year 2019-20. This figure increased to over 2.16 lakh in AY24 (FY 2022-23), demonstrating a growth of 97 percent. Even during the challenging Covid years of 2020-21 and 2021-22, there was a consistent rise in crorepati filers. For instance, the number of such filers in AY22 exceeded 1.27 lakh, marking a growth of 6.7 percent. This number further grew to 1.87 lakh in the subsequent Assessment Year, representing an increase of over 47 percent.
According to a recent report from The Times of India, 52% of salaried individuals declared taxable income exceeding Rs 1 crore in the most recent assessment year, a slight increase from 49.2% in AY2022-23 and 51% in AY2013-14. Within the income range of Rs 1-5 crore, approximately 53% of individuals were salaried, but this percentage decreased at higher income levels, with more business owners and professionals represented. It is worth noting that none of the 23 individuals declaring annual taxable income exceeding Rs 500 crore were salaried employees, while 19 out of 262 individuals in the Rs 100-500 crore bracket were salaried.
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